Some numbers for new O/O

I'd say at least 3 weeks of running costs, preferably more. It may be one thing to have the truck, the load, the insurances, but once out of that drive and anything can happen.

 

I came from the trades and was green as. I got a licence, bought a truck, and off I went. I did however have regular work lined up through a family business which helped getting started. Still its not been all my own way or smooth by many means.

few things I have found,

the cost to repairs on trucks is harsh. Its no secrete you want the truck back on the road asap, so parts, labour, towing etc all reflect this. Buy a brand of truck that is supported by the dealer close to your base, and has a large network of support. Check what parts the dealer has in stock as they will know roughly what your truck uses, and how long it takes to get them from the warehouse. In my case KW/DAF have over 3 million dollars worth 15 mile down the road. Mack/Volvo perhaps similar, but 1000 miles away. Rarely are they overnight so that turns into 2, then fitting, and that's after a vacancy.

you need that sucker to be as fuel efficient as possible. From my experience and what I can gather, auto, 6x2, aerodynamic as possible, with the smallest motor possible with the right torque to get the job done. The oil cartels of the world don't feel rich enough yet and trucks have crap economy at best, so small %s matter. Big exhaust stacks and air cleaners hanging off the show, meh. By motor size I mean I have a 460hp pulling 93,00lb, I work with a guy who has 510hp, another with 520hp with half the load. No doubt bigger compacity is more fun to drive but we all get the same place in the same time as the roads and speed limit dictates.

just how competitive it is, especially where national or larger operators exist . They can have very small margins and manipulate the market as they have coverage, numbers, and redundancy; were as an O/O you are one. Price matching is suicide, trying to think of how to offer service that competes is difficult. Finding a niche market that is happy to support you if you support them is not so easy. Then bigger players are always circling and unfortunately money often wins over loyalty, service, and relationships.

Lastly, and I guess its not one to celebrate. You can make a start out of another's misery. I picked up a low milage truck from a bankruptcy. Not the truck I thought I'd be buying however fits the bill and does the job nicely.

 

10k will more then likely get you to your first check, but you better have another 40-50 in either cash or credit for the what ifs, like first load you you grenade a power divider and have to get towed in and such, 20k and 50+ on credit would be a little more comfy, I’d immediately pay off anything that goes on credit and build up Atleast a month reserve once the checks start rolling in, guys will tell you more, which is always nice to have, but life’s not perfect and sometimes you just have to go for it

I also took 2 years to rebuild my truck while keeping a job so that was a bit of ease as far as mechanical side

 

This is so true.


Work smarter.

Myself, daughter, wife, and manager spend a fair amount of our time getting good contracts.

There is tons of work out there, but then so many want to all just pull light little vans, and go from metropolis to metropolis, no load and unload themselves, and use brokers all the time.

Why?

Go look for odd ball loads, to weird places, break a sweat loading, and make more money.

I read hear a lot about running more miles, its not all about the interstate highway and running 700 miles per day.
Why run 700 miles of interstate, when you can make double the money running half the miles, off the beaten track.
You don't need to go looking where the masses are already looking.
Look for the odd stuff.

If you can make more doing 25 mph in the bush, than 75 on the interstate, why wouldn't you.
Or going to a sleepy little town nowhere near the interstate.

Some of you also trash talk gravel truck drivers.

If that gravel truck makes double the money of the van puller, does it make sense to bash the driver, for doing something different.
Gravel trucks are in short supply here, i hear people ecstatic to get $5/mile. I won't even consider the thought of starting mine for that.

I was called today about hiring another gravel truck of mine. He offered me $190/hour, I laughed and laughed, told him not to call me again unless he had a serious offer.

 

AND this is why I do what I do. Home every day, more control over repair, maintenance cost, some semblance of a life, taking a shower/bath in MY bathroom and the list goes on. Why would I want to go back on the road to NET less money? I've been everywhere and if I want to go some where I can. I say "Work smarter not harder".

 

Great advice. Thanks. Looking to be an owner op myself and this helped a lot.

 

I’ve got double check my numbers at home, but I don’t think I even broke 60,000 miles last year

 

Wow Dune, Over the past 4 months of having my new authority you are dam near spot on with the numbers. Granted I did not buy a new truck and I did not buy a trailer at all. Running Power Only witch has it's ups and downs. Dec and Jan look very slow as I'm at home now when I should be on the road.
I started with 25k from a divorce settlement.
Occurred a 13k person loan.
Financed 50k for my truck 21k down.
20k limit credit card for Mudflap purchases
That's all just start up capital and it's all gone now (excluding the credit card). but I'm still rolling averaging 18k per month including slow DEC and Jan so far.
I did hire a dispatch company witch was well worth it. I run with factoring as I didn't want the liability of shady brokers. Now I'm thinking about hiring an office support staff to help keep me organized and on track. I'm looking for more ways to reduce expenses and increase my exposure to dedicated lanes. As well as alternate sources of income/work.
It is a tough game out here and the company experience only gets you so far.

 

.....you’re using a dispatcher, factoring and hiring office personnel... to lower your expenses?
Must be that new math

 

I just about spit out my water when I read that. Good gosh man how many people do you need to take your money? Just WOW!